If the incentive is wrong, the behaviour is likely to be wrong too
Now we know why Kraft CEO wanted badly the Cadbury deal that she sold a good business which Buffett criticise. FT just reported that Irene Rosenfeld, Kraft CEO was given a 41 per cent pay rise last year to $26.3m for services that included “exceptional” leadership in the takeover of Cadbury.
As Buffett says “Never ask the barber whether you need a hair cut”
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